Semiconductor Equipment Sales Surge as AI Fuels an Unstoppable Growth

The memory market is growing at an unprecedented pace, which means the market for semiconductor manufacturing equipment is also on the rise. According to SEMI, as cited by Tom’s Hardware, global sales of such equipment will grow at least until 2027. By the end of the current year, the market is expected to reach $133 billion, and by 2027, the figure will grow to $156 billion. Interestingly, this can be compared to the nearly $200 billion video game market. It is also worth noting that the authors consider equipment for semiconductor wafer manufacturing, test equipment, and assembly and packaging equipment.

Global sales of semiconductor equipment show a steady trend, with a forecasted growth in both frontend and backend segments for three consecutive years, culminating in exceeding the total sales volume over $150 billion for the first time in 2027. Investments in supporting AI demand have been stronger than expected since our mid-year forecast, allowing us to raise the forecast for all segments.

The silicon wafer processing equipment makes the most significant contribution to the market. Already in 2024, this segment grew to $104 billion, and by 2027, the figure will be about $135.2 billion, meaning the lion’s share of the market money comes from this type of equipment.

Increasing Demand Driven by AI

The semiconductor equipment market is witnessing an increasing demand driven by advancements in artificial intelligence. This trend has led to heightened investments in AI-driven technologies, which are anticipated to accelerate the growth of the sector significantly. With AI taking center stage, the demand for cutting-edge semiconductor equipment has spurred manufacturers to innovate at a rapid pace, addressing the evolving needs of different industries.

Technological Innovations and Challenges

As companies venture further into AI, the semiconductor equipment industry faces unique challenges, particularly in silicon wafer processing. The need for smaller, more efficient chips has pushed companies to explore new materials and processes. While these innovations promise superior performance, they also introduce complex engineering challenges that require ongoing research and development.

Future Outlook

With the market poised for considerable growth, stakeholders in the semiconductor equipment sector are actively investing in future-proofing technologies. The anticipated influx of AI applications across various sectors is set to sustain this growth trajectory well beyond 2027, paving the way for groundbreaking advancements in semiconductor technology.